Rules change for cleaner advice
Financial advisers’ record-keeping obligations have been updated following industry consultation.
The updated obligations require Australian financial services (AFS) licensees to keep records to prove that it and its representatives have complied with the Future of Financial Advice (FOFA) best interests duty and related obligations when they give advice.
ASIC says it consulted with the industry on the record-keeping reforms in July 2013, and has now released a report on the feedback and subsequent class order modifying the law to reflect the updated obligations.
ASIC says keeping records of advice and transactions is important to ensuring clients receive good advice and that financial services remain efficient, honest and fair.
The changes are detailed here.